Bitcoin is a digital cryptocurrency and payment system that is entirely decentralized, meaning it is based on peer- to-peer transactions with no bureaucratic oversight. Transactions and liquidity within the network are instead based on cryptography. The system first emerged formally in 2009 and is currently a thriving open-source community and payment network. Based on the uniqueness of Bitcoin’s payment protocol and its growing adoption, the Bitcoin ecosystem is gaining lots of attention from businesses, consumers, and investors alike. Namely, for the ecosystem to thrive, we need to replicate financial services and products that currently exist in our traditional, fiat currency world and make them available and custom-tailored to Bitcoin, as well as other emerging cryptocurrencies.
Price action, Volume, Volatility, Correlation
- How do cryptocurrencies trade (i.e., price, volume, etc.) ?
- Do they trade similar to other financial assets (e.g.,. stocks, bonds, gold, etc.)?
- Within the cryptocurrency asset class, is there a strong correlation among the different cryptocurrencies (e.g., Bitcoin, Ethereum, etc)?
- Do cryptocurrencies offer non-correlated returns to traditional financial stock?
- How do cryptocurrency markets behave? Similar or different to other financial assets?
- Are the markets for different cryptocurrencies inseparably linked or largely independent?
- How did the historical prices / market capitalizations of various cryptocurrencies change over time?
- Which cryptocurrencies are more volatile and which are more stable?
- How does the price fluctuations of cryptocurrencies correlate with each other?